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CDBG and HOME Programs

The City of Grover Beach is a non-entitlement community, eligible to competitively apply for U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) funds administered by the State of California. The grants fund programs and projects benefiting very-low, low- and moderate-income persons/households of our community. 

Community Development Block Grant (CDBG)

CDBG program funds may be used for the following types of projects:

•     Public Improvements - water and sewer facilities, flood and drainage facilities, street 
      improvements (curb, gutter and sidewalk), and utilities. Street repair is not an eligible project.

•     Public Facility - acquisition, rehabilitation or new construction of buildings used for public purposes
      such as training, health services, education, recreation, nutrition, shelter, day care, temporary
      housing and fire protection.

•     Public Service - child care, health care, recreation programs, fair housing counseling, drug and
      alcohol abuse counseling and testing, homeless services, senior services, and nutrition services
      benefiting low and moderate income persons.

•     Planning and Technical Assistance - studies, analysis, data gathering, preparation of plans and
      identification of action that will implement plans. Grant writing is not an eligible use.

•     Housing:

    • Housing Rehabilitation (HR) or Home ownership Assistance (HA) Programs for sites
      with four or less units.
    • Housing Rehabilitation and or Acquisition for Multi-family Sites - Five or More Units. 

•     Business Assistance & Micro-enterprise Assistance. Examples of Business Assistance include
      financing of working capital, furniture, equipment, and property repairs/improvements.
      Examples of Micro-enterprise include business training, financing of working capital, furniture,
      equipment, and property repairs/improvements.

In September 2017, the State Department of Housing and Community Development (HCD) released a Notice of Funding Availability for the CDBG Program. In November 2017, the City Council authorized the submittal of an application for the following:

Activity Title

Description 

Amount

Water/Sewer Improvements Water line improvements at various locations throughout the City

$1,821,415

Security Deposits
Payment of a security deposit in order for a low- or moderate-income household to rent a housing unit.
$83,721
Subsistence Payments
Payment of rent, mortgage, and utilities for up to three months due to a financial hardship to prevent homelessness. $381,395
Planning Only Senior Center Feasibility Study
$93,023
General Program Administration   $178,467
Total  

$2,558,021


It is anticipated that HCD will announce the 2017 CDBG funding awards in Spring 2018.

Home Investment Partnerships Program (HOME)
HOME program funds may be used for the following programs and projects:

  • First Time Home Buyer Program - funds to provide loans to home buyers for acquisition and/or acquisition of a dwelling with rehabilitation.

  • First Time Home Buyer Project - the development of homes to be sold to first time home buyers. Construction financing of new construction or acquisition/rehabilitation/conversion projects, with 100 percent of the HOME investment rolling over to permanent financing and being used to provide mortgage assistance to first-time home buyers or home buyer mortgage assistance only in a project that is being constructed or acquired and rehabilitated with other funds.

  • Owner Occupied Rehabilitation Program - funds to assist owners whose primary residence is in need of repairs, improvements or reconstruction necessary to meet federal, state, or local building codes and correct health and safety deficiencies.

  • Rental Rehabilitation - funds provided to rehabilitate a specific multi-family rental project.

  • Rental New Construction Project - funds provided to develop a specific multi-family project on a specific site by a specific developer.

  • Tenant-Based Rental Assistance Program - funds to provide rent subsidies and/or security deposits to eligible households.

In order to be eligible for either the first time home buyer or owner occupied rehabilitation programs, the applicants' household income must fall below 80% of the County median income as follows:

Household Size

1

2

3

4

5

6

7

8

Income Limit
as of 6/15/17
 $45,750  $52,300  $58,850  $65,350  $70,600  $75,850  $81,050  $86.300

In addition, the property to be purchased or rehabilitated cannot exceed $404,000 in value after rehabilitation.

For additional information on these programs, please contact Janet Reese, Planner II at (805) 473-4520.

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